After Gujarat, Maharashtra became the second state to slash Value-Added Tax (VAT) on prices of petrol and diesel by Rs 2 and Re 1 respectively, effective from midnight.
The decision would be a big relief to the state citizens as Maharashtra levies the highest VAT in the country on petrol.
Earlier in the day, poll-bound Gujarat also slashed the VAT on fuel prices in the state.
Gujarat Chief Minister Vijay Rupani informed that the VAT on fuel will be cut by 4 percent. Hence, the price of petrol will come down by Rs. 2.93, and that of diesel by Rs, 2.72.
He said that the state government would reduce taxes on petrol and diesel in the coming two or three days.
The states' decision in the direction comes after Union Minister Dharmendra Pradhan asked the states to slash the VAT on fuel by 5 per cent in consumer interest as the Centre also reduced the excise duty on petrol and diesel to give relief from relentless increase in prices and leave more money in hands of consumers.